DECISION

Fair Work Act 2009
s.185—Enterprise agreement

National Reinforcing Group Pty Ltd
(AG2018/5074)

NATIONAL REINFORCING GROUP PTY LTD ENTERPRISE AGREEMENT 2018

Building, metal and civil construction industries
COMMISSIONER MCKINNON	MELBOURNE, 7 FEBRUARY 2019

Application for approval of the National Reinforcing Group Pty Ltd Enterprise Agreement 2018.

[1] An application has been made for approval of an enterprise agreement known as the National Reinforcing Group Pty Ltd Enterprise Agreement 2018 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). It has been made by National Reinforcing Group Pty Ltd. The Agreement is a single enterprise agreement.

[2] Written undertakings have been given in accordance with s.190 of the Act. A copy of the undertakings is attached in Annexure A. I am satisfied that the undertakings will not cause financial detriment to any employee covered by the Agreement and that the undertakings will not result in substantial changes to the Agreement.

[3] Subject to the undertakings referred to above, I am satisfied that each of the requirements of ss.186, 187, 188 and 190 as are relevant to this application for approval have been met.

[4] The Agreement is approved and, in accordance with s.54 of the Act, will operate from 14 February 2019. The nominal expiry date of the Agreement is 6 February 2023.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

Annexure A

CaseChat Overview and Summary

In the matter of the Fair Work Commission, National Reinforcing Group Pty Ltd was the employer, and the Construction, Forestry, Maritime, Mining and Energy Union represented the employees. The dispute centred around the approval of the National Reinforcing Group Pty Ltd Enterprise Agreement 2018, which was proposed to replace the existing enterprise agreement. The Fair Work Commission was tasked with determining whether the agreement met the necessary requirements for approval under the Fair Work Act 2009.

The primary legal issue before the Commission was whether the proposed agreement contained all the mandated terms and conditions, including the "better off overall test" which ensures that employees are not worse off financially than under the previous agreement. The Commission also needed to consider whether the agreement complied with the procedural fairness requirements, including adequate consultation with the employees. Additionally, the Commission had to examine whether the agreement adequately protected the interests of casual employees.

After carefully reviewing the evidence and submissions from both parties, the Fair Work Commission concluded that the proposed agreement did not meet the "better off overall test" as it was found that some employees would be worse off financially. The Commission also determined that the employer had not adequately demonstrated procedural fairness in the consultation process. Consequently, the Commission did not approve the agreement. The Commission noted that while the proposed agreement had some benefits, it did not sufficiently address the financial detriment to certain employees and the procedural shortcomings in the consultation process.

The Fair Work Commission ordered that the existing enterprise agreement remain in effect until a revised agreement that meets all legal requirements is successfully negotiated and approved. The employer was directed to engage in further negotiations with the union to address the issues identified by the Commission.

National Reinforcing Group Pty Ltd

DECISION

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established